Wednesday, October 9, 2019

Marketing Research and Information Needs Essay Example | Topics and Well Written Essays - 1500 words

Marketing Research and Information Needs - Essay Example Companies still mishandle 'line extension' projects that fail. It is imperative that new products for development be carefully chosen, "product strategy calls for complex decisions, among others, on product mix and product line" (Kotler and Armstrong, 1991, pp. 512-513). There has been a continuous rise in the demand for healthy snacks all over the world. This trend was essentially started in the United States as a result of a new health craze and obesity scare due to rising number of weight levels. Consumers now want to minimize their fat intake as well as reduce ingestion of other potential damaging sugar - substitute substances. This tendency to buy only 'healthy' foods has extended to the snack - food and drink sector where consumers want to enjoy snacks but at the same time not feel guilty or worried about potential damage to their health. The new trend towards healthier choices in snack - food was revealed by the speedy swap from carbonated drinks and carbohydrate ridden foods to 'non- carbs', "But with worldwide sales growth of carbonated beverages slowing, the growth lately has been found in non-carbonated beverages such as bottled water, teas, sports drinks, energy and health drinks, and ready-to-drink coffee" (Ashton, 2000). Health snacks had resulted in an entirely new mar... Carbonate- free drinks eventually led to a rise in the sports and energy drink sector. This market was originally dominated by PepsiCo's Gatorade and laid back SoBe. However, Coca Cola saw the potential in this sector and followed PepsiCo into energy drinks. Coca cola launched its original attempt in energy and sports drinks with PowerAde. PowerAde was declared a competitor to Gatorade and was marketed accordingly. Reaction to PowerAde in the market was feeble and Gatorade continued to lead. After several re - launches and alternations and modifications in the ingredients, PowerAde is now second runner up in the sports drink sector while Gatorade persists in remaining the first. Coca Cola started an energy drink brand, KMX, but still felt a gap in the market. Reactions to KMX were far from warm and Coca Cola required a product to fill up the space. In the first quarter of 2005, Coca Cola introduced Full Throttle, an energy drink. Full Throttle will compete with strong brands such as Red Bull as well as PepsiCo's SoBe range. External Pressures Leading to Change Requirement PepsiCo is swiftly gaining force in the international snack food market. Their success is credited largely to their lack of sentiment for their star performers, as Brady (2004) puts it, "What distinguishes PepsiCo from some competitors is an intense lack of sentimentality about its principal brands". PepsiCo asserts that it is keener to satisfying its customer's needs than preserving its existing product lines. New product introduction is PepsiCo's strategy of staying competitive, "By defining its mission as serving the customer rather than protecting its venerable brands, PepsiCo is hoping to stave off a stagnant middle age" (Brady, 2004). In order to continue to be innovative and to

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